Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Chapter 13 - Marketing: Helping Buyers Buy
13-31
b. The latest in TECHNOLOGY enables sellers
to work with buyers to determine their indi-
vidual wants and needs and to develop
goods and services specifically designed for
those individuals.
E. THE CONSUMER DECISION-MAKING PROCESS
1. Studying consumer behavior centers on study-
ing the CONSUMER PURCHASE DECISION
PROCESS:
a. Recognize the problem.
b. Do the information search.
c. Evaluate the alternatives.
d. Make the purchase decision.
e. Do a post-purchase evaluation.
2. Consumer behavior researchers also study the
various influences that impact CONSUMER
BEHAVIOR.
a. MARKETING MIX VARIABLES (the four
Ps)
b. PSYCHOLOGICAL INFLUENCES such as
perception and attitudes
c. SITUATIONAL INFLUENCES such as the
type of purchase and physical surroundings
d. SOCIOCULTURAL INFLUENCES such as
reference groups and culture
3. Consumer behavior is also influenced by other
factors:
a. LEARNING creates changes in an individu-
al’s behavior resulting from previous experi-
Chapter 13 - Marketing: Helping Buyers Buy
13-32
critical thinking
exercise 13-4
THE MARKETING OPPORTUNITY
This exercise presents a potentially revolutionary new product
and asks the students to consider some key marketing ques-
tions. (See the complete exercise on page 13.73 of this manu-
al.)
PPT 13-48
Steps in the Consumer Decision-
Making Process
STEPS in the CONSUMER
DECISION-MAKING PROCESS
13-48
LO 13-5
1. Problem recognition
2. Search for information
3. Evaluating alternatives
4. Purchase decision
5. Postpurchase evaluation
adapting to
change
PPT 13-49
Turing Negatives to Positive
TURNING NEGATIVES to POSITIVE
13-49
• Online product reviews have changed the
consumer decision-making process.
• But the reviews are not always valid because they
could be written about the experience instead of
the product.
• Amazon hopes to correct this issue and has
started a program in which the site’s most trusted
reviewers are sent products to write about.
lecture enhancer 13-8
FAMILY LIFE CYCLE THEORY
UPDATED
Family life cycle characteristics can be used to understand
consumers’ buying behavior over time. (See the complete lec-
ture enhancer on page 13.61 of this manual.)
Chapter 13 - Marketing: Helping Buyers Buy
13-33
ences and information.
b. A REFERENCE GROUP is the group that an
individual uses as a reference point in for-
mation of his or her beliefs, attitudes, values,
or behavior.
c. CULTURE is the set of values, attitudes, and
ways of doing things that are transmitted
from one generation to another in a given so-
ciety.
d. SUBCULTURE is the set of values, atti-
tudes, and ways of doing things that results
from belonging to a certain group with which
one closely identifies.
e. COGNITIVE DISSONANCE is the type of
psychological conflict that can occur after a
purchase—such as doubts about whether
they got the best product at the best price.
learning objective 6
Compare the business-to-business market and the consumer market.
VII. THE BUSINESS-TO-BUSINESS MARKET
A. Marketers of goods and services to manufacturers,
institutions, commercial operations, and the gov-
ernment are called B2B MARKETERS.
B. Several factors make BUSINESS-TO-BUSINESS
MARKETING DIFFERENT.
1. NUMBER: There are relatively few customers
compared to the consumer market.
2. SIZE: Though few in number, industrial custom-
ers are relatively very large.
Chapter 13 - Marketing: Helping Buyers Buy
13-34
PPT 13-50
Key Factors in Consumer Decision
Making
KEY FACTORS in CONSUMER
DECISION-MAKING
13-50
PhotoCredit:PeterHilton
LO 13-5
• Learning
• Reference Groups
• Culture
• Subcultures
• Cognitive Dissonance
PPT 13-51
Top Marketing Challenges
TOP MARKETING CHALLENGES
13-51
LO 13-5
• Marketing can be challenging in both the B2C and
B2B markets.
• Common issues are:
- Brand awareness
- Social media
- Converting leads into customers
- Budgeting
- Increasing profit
Source: Entrepreneur, www.entrepreneur.com, accessed November 2014.
critical thinking
exercise 13-5
CONSUMER OR B2B GOOD?
This exercise asks students to classify various products and
services as being a consumer good, a B2B good, or both. (See
the complete exercise on page 13.75 of this manual.)
PPT 13-52
Business-to-Business Market (B2B)
BUSINESS-to-BUSINESS
MARKET (B2B)
13-52
LO 13-6
• B2B marketers include:
- Manufacturers
- Wholesalers and retailers
- Hospitals, schools and charities
- Government
• Products are often sold and resold several times
before reaching final consumers.
Chapter 13 - Marketing: Helping Buyers Buy
13-35
3. GEOGRAPHICALLY CONCENTRATED: B2B
markets tend to be concentrated in certain areas
of the country.
4. RATIONAL: Business buyers are generally
more rational in their purchase decisions.
5. DIRECT: B2B sales tend to be direct.
6. PERSONAL SELLING: There is much more
emphasis on personal selling than in the con-
sumer market.
VIII. YOUR PROSPECTS IN MARKETING
There is a wider variety of careers in marketing than in
most business areas.
IX. SUMMARY
Chapter 13 - Marketing: Helping Buyers Buy
13-36
PPT 13-53
B2B Market Differences
TEXT FIGURE 13.7
Comparing Business-to-Business
and Consumer Buying Behavior
B2B MARKET DIFFERENCES
13-53
LO 13-6
This text figure shows some of the differences between buying
behavior in the B2B market and in the consumer market.
test
prep
PPT 13-54
Test Prep
TEST PREP
13-54
• Define the terms consumer market and business-
to-business market.
• Name and describe five ways to segment the
consumer market.
• What is niche marketing and how does it differ
from one-to-one marketing?
• What are four key factors that make B2B markets
different from consumer markets?
Chapter 13 - Marketing: Helping Buyers Buy
13-37
PowerPoint slide notes
PPT 13-1
Chapter Title
Copyright © 2015 by the McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Marketing:
Helping
Buyers Buy
CHAPTER 13
PPT 13-2
Learning Objectives
LEARNING OBJECTIVES
13-2
1. Define marketing, and apply the marketing concept
to both for-profit and nonprofit organizations.
2. Describe the four P’s of marketing.
3. Summarize the marketing research process.
PPT 13-3
Learning Objectives
LEARNING OBJECTIVES
13-3
4. Show how marketers use environmental scanning to
learn about the changing marketing environment.
5. Explain how marketers apply the tools of market
segmentation, relationship marketing and the study
of consumer behavior.
6. Compare the business-to-business market and the
consumer market.
Chapter 13 - Marketing: Helping Buyers Buy
13-38
PPT 13-4
Daymond John
DAYMOND JOHN
FUBU
13-4
• Started sewing wool hats in his
apartment in 1989 and sold
them on the street.
• He started designing other
products and created the brand
FUBU.
• After many rocky years, John
has earned millions and advises
others on Shark Tank.
PPT 13-5
Name That Company
NAME that COMPANY
13-5
This company studies population growth and
regional trends as it expands its product line for
specific regions of the country. Its research led to
the creation of Creole flavors targeted primarily
in the South and spicy nacho chees flavors mad
especially for Texas and California.
Name that company!
Company: Campbell Soup
PPT 13-6
What’s Marketing?
• Marketing -- The activity, set of institutions and
processes for creating, communicating, delivering,
and exchanging offerings with value for customers,
clients, partners, and society at large.
WHAT’S MARKETING?
13-6
LO 13-1
Simply put, marketing is activities buyers and sellers perform
to facilitate mutually beneficial exchanges.
Chapter 13 - Marketing: Helping Buyers Buy
13-39
PPT 13-7
Focus of Contemporary Marketing
FOCUS of CONTEMPORARY
MARKETING
13-7
• Marketing today involves helping the buyer buy
through:
- Websites that help buyers find the best price,
identify product features, and question sellers.
- Blogs and social networking sites that cultivate
consumer relationships.
LO 13-1
PPT 13-8
Four Eras of U.S. Marketing
FOUR ERAS of U.S. MARKETING
13-8
• Production Era
• Selling Era
• Marketing Concept Era
• Customer Relationship
Era
LO 13-1
PPT 13-9
The Production and Selling Eras
The PRODUCTION and
SELLING ERAS
13-9
• The general philosophy
was “Produce what you
can because the market
is limitless.”
• After mass production,
the focus turned from
production to persuasion.
LO 13-1
Chapter 13 - Marketing: Helping Buyers Buy
13-40
PPT 13-10
The Marketing Concept Era
• After WWII, a consumer spending boom
developed.
• Businesses knew they needed to be responsive
to consumers if they wanted their business.
The MARKETING CONCEPT ERA
13-10
LO 13-1
PPT 13-11
Applying the Marketing Concept
APPLYING the
MARKETING CONCEPT
13-11
LO 13-1
• The Marketing Concept includes three parts:
1. Customer Orientation -- Finding out what
customers want and then providing it.
2. Service Orientation -- Making sure everyone in an
organization is committed to customer
satisfaction.
3. Profit Orientation -- Focusing on the goods and
services that will earn the most profit.
PPT 13-12
The Customer Relationship Era
The CUSTOMER
RELATIONSHIP ERA
13-12
LO 13-1
• Customer Relationship Management (CRM) --
Learning as much as you can about customers and
doing what you can to satisfy or exceed their
expectations.
• Organizations seek to enhance customer
satisfaction building long-term relationships.
• Today firms like Priceline and Travelocity use
CRM that allow customers to build a relationship
with the suppliers.
Chapter 13 - Marketing: Helping Buyers Buy
13-41
PPT 13-13
The Emerging Mobile Marketing Era
The EMERGING
MOBILE MARKETING ERA
13-13
LO 13-1
• As digital technology continues to grow,
consumer demands are expected to rise in:
1. Now: Consumers want to interact anywhere, anytime.
2. Can I?: They want to use information in new ways that
create value for them.
3. For me: Consumers expect personalized experiences.
4. Simply: Consumers want all interactions to be easy.
PPT 13-14
Service with a Smile
• The cost of acquiring a new customer is 5x the
cost of retaining one. Here’s how to keep them:
SERVICE with a SMILE
Six Steps for Keeping Your Customers Happy
13-14
Source: Inc. Guidebook, Vol. 2 No. 5.
LO 13-1
1. Build trust
2. Emphasize the long term
3. Listen
4. Treat your customers like stars
5. Show appreciation
6. Remember employees are
customers too!
1. It’s important for companies to keep hold of their
customer base. It’s too costly to keep searching out
new customers.
2. Ask students: What has a company done to keep you
coming back? What has a company done to you that
ensures you’ll never leave
PPT 13-15
Making Sustainability Just Peachy
MAKING SUSTAINABILITY
JUST PEACHY
13-15
• Campbell Soup is one of the
100 Most Sustainable
Corporations in the World.
• They work with local farmers
in New Jersey to use peaches
unfit for purchase.
• Campbell’s manufactures
peach salsa at no cost and
donates proceeds to the Food
Bank of South Jersey.
Chapter 13 - Marketing: Helping Buyers Buy
13-42
PPT 13-16
Nonprofit Marketing
• Nonprofit marketing tactics include:
NONPROFIT MARKETING
13-16
LO 13-1
- Fundraising
- Public Relations
- Special Campaigns
- Ecological practices
- Changing public opinions and
attitudes
- Increasing organizational
membership
1. This slide identifies marketing tactics nonprofits can
use to market their organizations.
2. Nonprofits must effectively market their causes in
order to reach their target audience.
3. Ask students: How is the marketing of a nonprofit
different from the marketing of a for-profit product?
(Students should be able to identify that there is little
difference between the two.)
PPT 13-17
Marketing Strategies for Nonprofits
MARKETING STRATEGIES for
NONPROFITS
13-17
LO 13-1
• Nonprofit marketing strategies include:
- Determine the firm’s goals and objectives
- Focus on long-term marketing
- Find a competent board of directors
- Exercise strategic planning
- Train and develop long-term volunteers
- Carefully segment the target market
1. This slide identifies many ideas for developing a suc-
cessful marketing strategy for non-profit organiza-
tions.
2. Regardless of the type or size of the organization,
nonprofits will need marketing strategies and tech-
niques to maximize their effectiveness.
3. Marketing tactics nonprofits may consider as a part
of an overall marketing program include the follow-
ing: newspaper inserts, cross promotions, packaging
promotions, and corporate newsletters.
4. Public relations will play an important role with
recognition and support for building strong commu-
nity goodwill. Based on the following statistics,
nonprofit organizations are very successful:
• During the past 10 years the number of re-
porting “public charities” grew by 6.3 per-
cent annually.
• The nonprofit sector includes more than 1
million organizations that spend nearly $500
billion each year – more than the GDP of
Brazil, Russia or Australia.
• Approximately 6 percent of all organizations
in the United States are nonprofits, and one
in every 15 people works for a nonprofit.
Chapter 13 - Marketing: Helping Buyers Buy
13-43
PPT 13-18
The Four Ps
The FOUR P’s
13-18
LO 13-2
The Four Ps are also known as the marketing mix.
PPT 13-19
Developing a Product
• Product -- A good, service, or idea that satisfies a
consumer
’
s want or need.
DEVELOPING a PRODUCT
13-19
LO 13-2
• Test Marketing -- Testing
product concepts among
potential product users.
• Brand Name -- A word,
letter, or a group of words or
letters that differentiates one
seller
’
s goods from a
competitor
’
s.
PPT 13-20
Pricing and Placing a Product
PRICING and
PLACING a PRODUCT
13-20
LO 13-2
• Pricing products depends on many factors:
- Competitors’ prices
- Production costs
- Distribution
- High or low price strategies
• Middlemen are important in place strategies
because getting a product to consumers is
critical.
Chapter 13 - Marketing: Helping Buyers Buy
13-44
PPT 13-20
Promoting the Product
PROMOTING the PRODUCT
13-21
PhotoCourtesyof:UriBaruchin
LO 13-2
• Promotion -- All the techniques sellers use to inform
people about their products and motivate them to
purchase those products.
• Promotion includes:
- Advertising
- Personal selling
- Public relations
- Word of mouth
- Sales promotions
PPT 13-21
Perfect Promotion
• Get customers emotional about your product:
- Make your product “built to love.”
- Use emotion-laden advertising.
PERFECT PROMOTION
How to Get Customers to Need Your Product
13-22
Sources: Entrepreneur, www.entrepreneur.com, accessed November 2014.
LO 13-2
• Be a likeable salesperson:
- Have confidence.
- Be intriguing.
- Show interest in others.
- Be enthusiastic and
respectful.
1. Companies are working more to create products that
are “built to love.” These products, like the iPad, cre-
ate excitement and loyalty from the get go.
2. Customers, in addition to looking for an amazing
product, look for salespeople who they feel are their
friends. The key to repeat business is the likability
factor.
3. Ask students: Have you ever gone back to a specific
store because of a particular salesperson? If you were
in sales, what would you do to increase your likabil-
ity factor?
PPT 13-22
Tangled Web of Promotion
TANGLED WEB of PROMOTION
Seven Sins of Web Design
13-23
Source: Entrepreneur, www.entrepreneur.com, accessed November 2014.
PhotoCredi :CortesdeCima
LO 13-2
• Too much clutter
• Too difficult to navigate
• Stale information
• Copycatting
• Ignoring the needs of your
customer base
• Not analyzing data
• Refusing to get outside help
1. Companies often create web sites because they be-
lieve they have to. However, if it’s not done right, it
could cause you to lose customers.
2. Not enough emphasis is put on checking the analyt-
ics. As noted in this chapter, market research is ex-
tremely important. The same goes for web research.
3. Ask students: Can you think of other things to add to
this list? What are some companies that have good
web sites? Bad web sites?
Chapter 13 - Marketing: Helping Buyers Buy
13-45
PPT 13-24
Test Prep
TEST PREP
13-24
• What does it mean to “help the buyer buy?”
• What are the three parts of the marketing
concept?
• What are the Four P’s of the Marketing Mix?
1. In the past marketing focused entirely on helping the
seller sell the product. Today marketing has changed
from selling to instead helping the buyer buy. It is
critical today that organizations do everything to help
buyers make decisions.
2. The three parts of the marketing concept are: (1)
customer orientation, (2) service orientation, and (3)
a profit orientation.
3. The Four P’s of the marketing mix are: (1) Product,
(2) Price, (3) Place, and (4) Promotion.
PPT 13-25
Searching for Information
SEARCHING for INFORMATION
13-25
LO 13-3
• Marketing Research -- Analyzing markets to
determine challenges and opportunities, and finding
the information needed to make good decisions.
• Research is used to identify products consumers
have used in the past and what they want in the
future.
• Research uncovers market trends and attitudes
held by company insiders and stakeholders.
To understand customer wants and needs, it is critical to con-
duct market research. Good market research will identify
products consumers have used, want to use in the future and
market trends.
PPT 13-26
Four Steps in the Marketing Research
Process
FOUR STEPS in the MARKETING
RESEARCH PROCESS
13-26
LO 13-3
1. Defining the problem or opportunity and
determining the present situation.
2. Collecting research data.
3. Analyzing the data.
4. Choosing the best solution and implementing it.
